Serbia's banking system assets decline 1% y/y at end-July 2013

By bne IntelliNews August 23, 2013

The consolidated assets held by Serbian banks fell 0.9% y/y to RSD 3,933bn (EUR 34.4bn) at end-July after inching up 1.1% y/y the month before, due to falling domestic credit, central bank data showed. The ratio of bank assets to full-year GDP retreated to 104.6% at end-July from 117.2% a year earlier and 122.0% at end-2012.

Domestic credit, which makes up 56% of the banking sector assets, swung to a 1.8% y/y drop to RSD 2,216bn at end-July from a 1.0% y/y increase the month before dragged down by declining loans to companies.

Corporate lending contraction deepened to 5.9% y/y to RSD 1,062.5bn in July from 2.2% y/y the month before as budgetary funds earmarked for subsidised loans have been spent in the first quarter of the year. Loans to households edged up 0.8% y/y to RSD 673bn following a 1.9% y/y growth in June.

The annual growth of banks’ lending to the government sector slowed to 10.2% y/y to RSD 297bn in July. The trend will likely continue reflecting the increased fiscal consolidation efforts.

Related Articles

Russia keeps Serbia waiting for promised MIGs

Russia plans to deliver six used MIG 29 aircraft to Serbia by end-2017, Russia’s Federal Service for Military-Technical Cooperation (FSMTC) Director Dmitry Shugaev said on July 19, Sputnik ... more

Fiat workers end 3-week strike that halted production at Serbia's top exporter

Production at the Fiat Chrysler Automobiles (FCA) Srbija factory in Kragujevac will restart on July 19 after workers and Prime Minister Ana Brnabic agreed on the evening of July 18 to end ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Dismiss